Battling Beadell banking on Sprott debt to complete turnaround

BRAZIL gold miner Beadell Resources has received the US$60 million backing of Sprott via a secured debt facility.

Battling Beadell banking on Sprott debt to complete turnaround Battling Beadell banking on Sprott debt to complete turnaround Battling Beadell banking on Sprott debt to complete turnaround Battling Beadell banking on Sprott debt to complete turnaround Battling Beadell banking on Sprott debt to complete turnaround

The miner said the debt “ensures ample liquidity through the final stages of the operational turnaround at Tucano, which commenced in 2016 including the completion of our plant upgrade which remains on time and on budget for completion mid-year”.

Key terms for the four year facility include an annual interest 6.75% plus the greater of US three-month LIBOR or 1.25%, and a “low number of options with a strike price to reflect a 30% premium to Beadell’s share price”.

Beadell will also pay $10 per ounce of gold on 50% of production during the last three years of the facility, capped at 225,000oz.

Beadell had cash and bullion of A$20 million at the start of 2018, and senior debt of $23 million in Sep...